Power supply price of power station

The pumped storage power station (PSPS) is a special power source that has flexible operation modes and multiple functions. With the rapid economic development in China, the energy demand and the peak-valley load difference of the power grid are continuing to increase.

The overall annual cost of electrical energy generated by a power station can be expressed in two forms viz three part form and two part form. (i) Three part form. In this method, the overall annual cost of electrical energy generated is divided into three parts viz fixed cost, semi-fixed cost and running cost i.e.

Since these charges depend upon the energy output, the running cost is directly proportional to the number of units generated by the station. In other words, if the power station generates more units, it will have higher running cost and vice-versa.

It is the cost of use of money. A power station is constructed by investing a huge capital. This money is generally borrowed from banks or other financial institutions and the supply company has to pay the annual interest on this amount.

In other words, if the power station generates more units, it will have higher running cost and vice-versa. The overall annual cost of electrical energy generated by a power station can be expressed in two forms viz three part form and two part form. (i) Three part form.

The average price of about 30 units ranging in size from 50 to 330 MW was about US$230/kW. Then in 2004, right after sales reached their lowest point since 1990, the average price had dropped to about US$180/kW, a price decline of about 28 percent. By 2006, the price had rebounded by 9 percent, followed by an additional 21 percent by 2008.